I have been deeply and happily immersed in marketing strategy, consumer research, advertising and integrated consumer communications for nearly two decades. Despite the potential fame and veneration of alternate career paths, working for and with companies like Kellogg’s, Kraft, Quaker, Clorox, Miller Brewing, Pillsbury, Genentech, Pioneer Electronics and The Four Seasons Hotel and Resorts, has proved intellectually challenging and richly rewarding. Understanding the underlying psychological reasons why consumers behave as they do has never been more interesting in this era of “always on” marketing. That’s where I come in: To contemplate and share the trends and implications in the world of consumer goods and retail.

The Sharing Economy Goes Five Star

Airbnb has emerged as an alternative to traditional vacation housing, arguably catering more to “travelers” than to “tourists.” For most, the stereotypical image of an Airbnb experience is a Millennial clad almost invariably in a plaid shirt (therefore also known by luminaries as the “Sweet Plaids”), paying as little as $20 to flop on an otherwise empty couch in an apartment that may house 3-4 permanent residents. The logic is simple…we live in an abundant universe and, all things equal, why not offer some piece of what you have to someone who needs what you have at a mutually acceptable rate?

Silicon Valley smart money knows Airbnb is much more than the marriage of sofas and Sweet Plaids. In mid April, Tech Crunch reported Airbnb closing a $500 million round of funding with a $10 billion valuation, led by iconic private equity group, TPG. Airbnb, together with companies like Craig’s List and eBayeBay, have come to represent what’s known as the Sharing Economy.

The headquarters of eBay in San Jose, California. Photographed on August 5, 2006 by user Coolcaesar. (Photo credit: Wikipedia)

Wikipedia defines the Sharing Economy as a socio-economic system built around the sharing of human and physical assets. Ironically, Wikipedia itself is an excellent example of the sharing economy, where individuals post their knowledge on any and all topics imaginable. Wikipedia content can be changed or edited or deleted or expounded upon by other contributors.

Principles of the Sharing Economy are the same as those of a very primitive system of exchange; trading goods and services from people who have them to people who need them. The difference between today’s Shared Economy and the old days is what George W. referred to as “the Internets.” Now the exchange of goods or services is not limited by how far we can walk with a bucket of fresh milk from our neighbor’s cow in exchange for a sweater knit from wool off a sheep in our backyard. Forbes estimates the equivalent revenue flowing through the share economy directly into people’s wallets will surpass $3.5 billion this year, with growth exceeding 25%.

A luxury resort in the historic Napa Valley beckons from just 45 miles from San Francisco. The Carneros Inn is by far not the only luxury resort in the world-class region of the Napa Valley, where travelers come from every inch of the globe to tour the best wineries in the galaxy and wait for years to dine at Thomas Keller’s French Laundry, just up the road. But the Carneros Inn is certainly of great advantage over some other luxury resorts as it is less than an hour drive from San Francisco.

Napa Valley welcome sign (Photo credit: Wikipedia)

I’m sorry to inform you that, as of today, The Carneros Inn (and, to the best of my knowledge, the other luxury resorts in the wine country) is yet to accept wampum and is not an active participant in the Sharing Economy. The gorgeous country-modern cottages replete with indoor/outdoor showers, linens with a thread count broaching four digits, and calming gardens where one can pick an apple or a quince or a pomegranate right off a tree on the meticulously tended premises cannot (yet) be exchanged for goods or services you may be able to offer. Even if you have a surplus of fresh eggs from your backyard (it’s legal to have chickens in San Francisco) or a custom-made website, it is unlikely you can make a trade for a cottage from the otherwise very accommodating front desk team.

However, the traveler who is likely to spend a night or two at the Carneros Inn or venue with a similar swank factor is also likely to have a valuable home in San Francisco or LA or Chicago or NYC. Like many cities, real estate in San Francisco is hot hot hot, with lots of demand and very little supply. By employing the Shared Economy, a homeowner can offer short-term leasing with services like Airbnb, HomeAwayHomeAway, or VRBO (Vacation Rentals by Owners) for top dollar. Don’t take my word for it…take a look at some of the luxury homes featured on Airbnb across the globe. Yes, it still includes opportunities for the Sweet Plaids to crash on a sofa or in an over-sized closet for very little money, but it also features absolutely spectacular homes at equally spectacular rates…many for over $1,000 per night.

Consistent with Silicon Valley’s smart money, Airbnb and the like have opportunity for exponential growth because their role is so obvious. Why just take a romantic weekend at a super luxe resort down the street when you can take that very same trip and subsidize it by allowing travelers in need to stay in your home at top dollar while you’re gone? The alternative is a lesser getaway… leaving your home empty and not generating income.

As the oh-so-wise Warren Buffet said, “There seems to be some perverse human characteristic to make easy things difficult.” The concept of earning money from an otherwise empty home when it’s going to be empty anyway sounds pretty easy, doesn’t it?

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This is definitely true. Some of the coolest places on Airbnb are ridiculously costly. It’s important to realize that the sharing economy can be used by everyone. You want a cheaper place to stay, you’ll find it. You want an exclusive mansion, you’ll find it too. Any entrepreneur can create a marketplace too–check out Near-Me (dot) com.

Check out Barcelona sharing economy startup trip4real. Similar to AirBnb, we also cater to “travelers” not “tourists” but rather than providing accommodation, we provide experiences. By connecting travelers to locals- who in turn provide tours and activities- we offer a more authentic traveling experience. We’re just starting to take off all over Europe. Check us out! www.trip4real.com